Graph 8-1 -According to Graph 8-1, the Tax Caused a Reduction in a Reduction

question 55

Multiple Choice

Graph 8-1
-According to Graph 8-1, the tax caused a reduction in consumer surplus, it is represented by area:

• A)A
• B)B + C
• C)D + E

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Definitions:

Sherman Act

A landmark federal statute in the field of Antitrust Law passed by Congress in 1890, which outlaws monopolistic business practices.

Foreign Companies

Businesses that are incorporated or registered outside of a country’s borders and operate within that country.

U.S. Commerce

Refers to the economic activities and trade within the United States, including transactions of goods and services.

Interstate Commerce Act

A United States federal law designed to regulate the railroad industry, particularly its monopolistic practices, by requiring reasonable and just rates with the establishment of the Interstate Commerce Commission.